Commitments and Contingencies

3 Months Ended

Apr. 03, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments

The Company's manufacturing suppliers require us to forecast wafer starts several months in advance. The Company is required to take delivery of and pay for a portion of forecasted wafer volume. As of April 3, 2016, and January 3, 2016, the Company had $129,000 and $1.4 million, respectively, of outstanding commitments for the purchase of wafer and finished goods inventory.

The Company has obligations with certain suppliers for the purchase of other goods and services entered into in the ordinary course of business. As of April 3, 2016, total outstanding purchase obligations were $1.5 million, of which $1.4 million are due within the next twelve months.

The Company leases its primary facility under a non-cancelable operating lease that expires at the end of 2018. In addition, the Company rents development facilities in India as well as sales offices in Europe and Asia. Total rent expense for the first quarters of 2016 and 2015 was approximately $198,000 and $239,000, respectively.

As of April 3, 2016, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:



	Operating Leases
	(in thousands)
Fiscal Years
2016 (Remaining 9 months)	$	618
2017	790
2018	799
2019	165
2020	170
2021	85
	$	2,627

Contingencies

One of the Company's licensors contends that the Company owes back royalties on sales of the Company's ArcticLink III VX devices. Based on the terms and conditions of the Amended and Restated License Agreement between the parties, the Company does not believe it is liable for any royalty payments on these sales. The parties have agreed upon a mediator and have tentatively agreed upon mediation in June, 2016. As of April 3, 2016, the Company estimates the possible loss relating to this matter to be in the range of $25,000 and $250,000.